Flour Mills of Nigeria’s shareholders approve merger of five subsidiaries

NIGERIA – Flour Mills of Nigeria Plc (FMN), an agro-allied company, has received approval from its shareholders to merge five of its subsidiaries with its holding company under a Scheme of External Restructuring.

Additionally, the shareholders sought to
see that all legal proceedings, claims and litigation matters pertaining to the
fertilizer business of Flour Mills or its Golden Fertilizer are sanctioned by
the court.

“We commend the Board and
Management for the restructuring exercise, as we hope it will lead to
higher profitability. We also hope it will not affect the existing employees
and shareholding structure.”

Paul Miyonmide Gbededo, the Chairman,
Golden Fertilizer Company Limited, commended the shareholders for approving the
merger while assuring them of maximum return on their investment.

Mr Miyonmide noted that the restructuring
is aimed at streamlining the company’s operations, reduce administrative costs
and improve operating efficiency – in line with the company’s long term
strategic thrust.

“The enlarged FMN, upon completion of the
restructuring would be able to eliminate transfer costs of materials, and
operate at a higher level of efficiency.

[this] will drive down costs, make
product pricing more competitive, improve profitability and enhance the bottom
line for the benefit of all stakeholders,” he said.

Additionally he said that this will
enable each of the value chain in FMN Group to target appropriate investors and
markets attracted to the specific businesses.

Apart from the milling sector FMN also
has investments in corn, soybeans, sorghum, sugarcane, palm oil, rice, cassava
and poultry and fertiliser production.